Leather industry eyes 6 percent growth in 2018-19: CLE

India’s leather sector is hoping a 6 percent growth in exports for the financial year 2018-19 and is confident of achieving higher growth in the coming years as it looks to boost exports from the country.

Leather industry eyes 6 percent growth in 2018-19: CLE - CNCThe Council for Leather Exports (CLE) in banking on the availability of raw material coupled with strong production and cheap labour for growth in the segment. CLE is looking to make deeper inroads in the U.S. market by increasing the production capacity to boost exports to meet the growing demand from the country.

"The industry is expecting a growth of 5-6 percent in exports during 2018-19 in rupee terms though it has the potential to achieve higher growth levels in coming years," CLE, chairman, Panaruna Aqeel said in a statement.

“The United States was the largest market for the Indian leather industry. To tap this market, we are increasing our capacities with the financial assistance of the government under the Integrated Development of Leather Sector,” he added.

The council has also requested the government to reduce GST rate to 12 percent from the existing 18 percent on footwear priced above Rs 1,000, to boost manufacturing and exports.

The council will also be hosting the Indian International Leather Fair from January 31 in the city of Mumbai. It will be followed by a Designers Fair which will see participation by at least 45 designers from eight countries.